Advertisement

Topics

MBT Financial Corp. Announces Second Quarter 2015 Profit

20:00 EDT 20 Jul 2015 | Globe Newswire

MONROE, Mich., July 21, 2015 (GLOBE NEWSWIRE) -- MBT Financial Corp., (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, reported a net profit of $2,285,000 ($0.10 per share, basic and diluted), in the second quarter of 2015, compared to a profit of $1,687,000 ($0.08 per share, basic and diluted), in the second quarter of 2014. The net profit for the six months ended June 30, 2015 was $5,062,000 ($0.22 per share, basic and diluted), compared to $3,454,000 ($0.16 per share, basic and diluted) in the six months ended June 30, 2014.

Earnings for the Company improved this quarter due to improvements in the net interest income, the provision for loan losses, non-interest income, and non-interest expenses. The net interest margin decreased from 3.15% in the second quarter of 2014 to 3.12% in the second quarter of 2015, but the average amount of interest earning assets increased $76.7 million. As a result, net interest income improved by 6.2% in the second quarter of 2015 compared to the second quarter of 2014. 

The provision for loan losses decreased $100,000 compared to the second quarter of 2014 as improving asset quality and recoveries of loans previously charged off allowed the bank to maintain an adequate Allowance for Loan Losses without recording a provision in the second quarter of 2015. Loans charged off during the quarter totaled $407,000, while $295,000 was recovered on loans charged off previously. Total Loans increased $5.8 million during the second quarter of 2015, but the continued improvement in asset quality enabled the Company to reduce the Allowance for Loan and Lease Losses from 2.13% of loans at the end the first quarter to 2.09% as of the end of the second quarter.

Non-interest income increased $221,000, or 6.2% in the second quarter of 2015 compared to the second quarter of 2014. Excluding gains and losses from securities and other real estate transactions, non-interest income increased $97,000, or 2.6% as deposit account fees, debit card income, and mortgage loan origination fees all increased.

Total non-interest expenses decreased $61,000, or 0.6% in the second quarter of 2015 compared to the second quarter of 2014. Expenses related to Other Real Estate Owned decreased $182,000 or 50.4% due to the decrease in the number of properties owned. FDIC insurance decreased $191,000 or 30.8% due to a decrease in our assessment rate following the termination of the Bank’s Consent Order with the FDIC and the State of Michigan in the second quarter of 2014.

Total assets of the company increased $13.4 million, or 1.1% compared to December 31, 2014. Total loans increased $13.2 million since the end of 2014. Capital increased $4.3 million since the end of last year primarily due to the year to date profit of $5.1 million. The Accumulated Other Comprehensive Income (AOCI) component of capital decreased $967,000 compared to the end of 2014. The AOCI decreased mainly due to a decrease in the market values of our investment securities that are classified as available for sale. The ratio of equity to assets increased from 10.52% at the end of 2014 to 10.75% at June 30, 2015. The Bank’s Tier 1 Leverage ratio increased from 9.55% as of December 31, 2014 to 10.43% as of June 30, 2015.

H. Douglas Chaffin, President and CEO, commented, “We are pleased with our results for the first half of 2015, and we believe that our balance sheet is positioned to produce better earnings results when interest rates increase. While we remain concerned about the effect of global and national issues on our local economy, we plan to continue our efforts to improve profitability by growing our loan portfolio and improving our operational efficiency. Our current environment still presents challenges, but we remain confident in our ability to maintain our position as the premier independent provider of financial services in the communities we serve.”

Conference Call
MBT Financial Corp. will hold a conference call to discuss the second quarter results on Wednesday, July 22, 2015, at 10:00 a.m. Eastern Time.  The call will be webcast and can be accessed at the Investor Relations/Corporate Profile page of MBT Financial Corp.’s web site www.mbandt.com. The call can also be accessed in the United States by calling toll free (877) 510-3783. The toll free number for callers in Canada is (855) 669-9657 and international callers can access the call at (412) 902-4136. A replay will be available one hour after the conclusion of the call at (877) 344-7529, Conference #10068486. The replay will be available until August 22, 2015 at 9:00 a.m. Eastern. The webcast will be archived on the Company’s web site and available for twelve months following the call.

About the Company:
MBT Financial Corp. (NASDAQ:MBTF), a bank holding company headquartered in Monroe, Michigan, is the parent company of Monroe Bank & Trust (“MBT”). Founded in 1858, MBT is one of the largest independently owned community banks in Southeast Michigan.  With nearly $1.3 billion in assets, MBT is a full-service bank, offering a complete range of business and personal accounts, credit and mortgage options, investment and retirement services and award-winning financial literacy outreach. MBT employee volunteers contribute approximately 9,000 hours of community service annually. MBT’s Commercial Lending Group is a top SBA and MEDC lending partner.  MBT’s Wealth Management Group (“WMG”) is one of the largest and most respected in Michigan.  The Michigan Bankers Association ranks MBT fourth among all Michigan banks for total trust assets.  With 25 offices, 47 ATMs, convenient mobile and online banking, a robust online and social media presence and a comprehensive array of products and services, MBT prides itself in offering World Class Banking with a Local Address. Visit MBT’s website at www.mbandt.com.

Forward-Looking Statements
Certain statements contained herein are not based on historical facts and are "forward-looking statements" within the meaning of Section 21A of the Securities Exchange Act of 1934.  Forward-looking statements which are based on various assumptions (some of which are beyond the Company's control), may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of these terms.  Actual results could differ materially from those set forth in forward-looking statements, due to a variety of factors, including, but not limited to, those related to the economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset/liability management, change in the financial and securities markets, including changes with respect to the market value of our financial assets, the availability of and costs associated with sources of liquidity, and the ability of the Company to resolve or dispose of problem loans.  The Company undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.      

MBT FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS - UNAUDITED
                 
    Quarterly Year to Date
     2015   2015   2014   2014   2014     
(dollars in thousands except per share data) 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr  2015   2014 
                 
EARNINGS              
 Net interest income $  9,081  $  9,342  $  8,802  $  8,852  $  8,552  $  18,423  $  17,047 
 FTE Net interest income $  9,213  $  9,474  $  8,934  $  8,989  $  8,693  $  18,687  $  17,333 
 Provision for loan and lease losses $  -   $  (800) $  -   $  (700) $  100  $  (800) $  200 
 Non interest income $  3,805  $  3,625  $  3,980  $  2,125  $  3,584  $  7,430  $  7,248 
 Non interest expense $  9,730  $  9,819  $  9,815  $  9,362  $  9,791  $  19,549  $  19,490 
 Net income $  2,285  $  2,777  $  2,149  $  1,712  $  1,687  $  5,062  $  3,454 
 Basic earnings per share $  0.10  $  0.12  $  0.09  $  0.08  $  0.08  $  0.22  $  0.16 
 Diluted earnings per share $  0.10  $  0.12  $  0.09  $  0.07  $  0.08  $  0.22  $  0.16 
 Average shares outstanding   22,733,739   22,721,845   22,697,204   22,691,593   22,205,086   22,727,825   21,515,737 
 Average diluted shares outstanding  22,931,544   22,906,334   22,956,549   22,986,918   22,498,236   22,917,997   21,805,165 
                 
PERFORMANCE RATIOS              
 Return on average assets  0.72%  0.89%  0.70%  0.56%  0.57%  0.80%  0.58%
 Return on average common equity  6.48%  8.28%  6.45%  5.21%  5.50%  7.36%  5.90%
                 
 Base Margin  3.04%  3.10%  3.07%  3.09%  3.08%  3.07%  3.09%
 FTE Adjustment  0.04%  0.05%  0.05%  0.05%  0.05%  0.05%  0.05%
 Loan Fees  0.04%  0.12%  0.02%  0.03%  0.02%  0.08%  0.02%
 FTE Net Interest Margin  3.12%  3.27%  3.14%  3.17%  3.15%  3.20%  3.16%
                 
 Efficiency ratio  73.18%  73.66%  75.19%  71.66%  75.85%  73.42%  75.99%
 Full-time equivalent employees    350     355     366     370     367     352     369 
                 
CAPITAL              
 Average equity to average assets  11.09%  10.70%  10.78%  10.71%  10.28%  10.90%  9.88%
 Book value per share $  6.11  $  6.17  $  5.92  $  5.76  $  5.68  $  6.11  $  5.68 
 Cash dividend per share $  -   $  -   $  -   $  -   $  -   $  -   $  -  
                 
ASSET QUALITY              
 Loan Charge-Offs $  407  $  322  $  455  $  3,353  $  1,662  $  729  $  2,336 
 Loan Recoveries $  295  $  1,105  $  533  $  2,182  $  405  $  1,400  $  928 
 Net Charge-Offs $  112  $  (783) $  (78) $  1,171  $  1,257  $  (671) $  1,408 
                 
 Allowance for loan and lease losses $  13,079  $  13,191  $  13,208  $  13,130  $  15,001  $  13,079  $  15,001 
                 
 Nonaccrual Loans $  11,135  $  12,329  $  13,040  $  13,351  $  19,048  $  11,135  $  19,048 
 Loans 90 days past due $  -   $  3  $  10  $  7  $  4  $  -   $  4 
 Restructured loans $  22,812  $  22,788  $  22,896  $  24,094  $  29,658  $  22,812  $  29,658 
  Total non performing loans $  33,947  $  35,120  $  35,946  $  37,452  $  48,710  $  33,947  $  48,710 
 Other real estate owned & other assets $  4,237  $  4,893  $  5,633  $  6,043  $  7,933  $  4,237  $  7,933 
 Nonaccrual Investment Securities $  -   $  -   $  -   $  -   $  3,403  $  -   $  3,403 
  Total non performing assets $  38,184  $  40,013  $  41,579  $  43,495  $  60,046  $  38,184  $  60,046 
                 
 Classified Loans $  41,952  $  46,668  $  48,978  $  48,662  $  63,665  $  41,952  $  63,665 
 Other real estate owned & other assets $  4,237  $  4,893  $  5,633  $  6,043  $  7,933  $  4,237  $  7,933 
 Classified Investment Securities $  -   $  -   $  -   $  -   $  9,379  $  -   $  9,379 
  Total classified assets $  46,189  $  51,561  $  54,611  $  54,705  $  80,977  $  46,189  $  80,977 
                 
 Net loan charge-offs to average loans  0.07%  -0.52%  -0.05%  0.78%  0.84%  -0.22%  0.48%
 Allowance for loan losses to total loans  2.09%  2.13%  2.16%  2.24%  2.50%  2.09%  2.50%
 Non performing loans to gross loans  5.43%  5.67%  5.88%  6.39%  8.12%  5.43%  8.12%
 Non performing assets to total assets  2.96%  3.06%  3.25%  3.47%  4.96%  2.96%  4.96%
 Classified assets to total capital  31.36%  35.70%  41.64%  42.73%  63.80%  31.36%  63.80%
 Allowance to non performing loans  38.53%  37.56%  36.74%  35.06%  30.80%  38.53%  30.80%
                 
END OF PERIOD BALANCES              
 Loans and leases $  625,172  $  619,385  $  610,880  $  586,152  $  599,803  $  625,172  $  599,803 
 Total earning assets $  1,177,475  $  1,196,949  $  1,160,371  $  1,135,016  $  1,093,461  $  1,177,475  $  1,093,461 
 Total assets $  1,292,104  $  1,307,053  $  1,278,657  $  1,251,812  $  1,209,831  $  1,292,104  $  1,209,831 
 Deposits $  1,121,280  $  1,135,312  $  1,111,811  $  1,089,484  $  1,049,789  $  1,121,280  $  1,049,789 
 Interest Bearing Liabilities $  898,116  $  914,569  $  908,590  $  894,753  $  869,843  $  898,116  $  869,843 
 Shareholders' equity $  138,864  $  140,208  $  134,536  $  130,652  $  128,794  $  138,864  $  128,794 
 Tier 1 Capital (Bank) $  134,215  $  131,235  $  117,944  $  114,898  $  111,929  $  134,215  $  111,929 
 Total Shares Outstanding    22,741,898     22,730,647     22,718,077     22,694,906     22,690,142     22,741,898     22,690,142 
                 
AVERAGE BALANCES              
 Loans and leases $  621,010  $  615,994  $  606,060  $  597,771  $  598,392  $  618,518  $  597,664 
 Total earning assets $  1,183,291  $  1,176,825  $  1,131,448  $  1,124,988  $  1,106,590  $  1,180,078  $  1,103,920 
 Total assets $  1,275,744  $  1,270,661  $  1,225,996  $  1,217,640  $  1,196,912  $  1,273,216  $  1,194,863 
 Deposits $  1,121,658  $  1,124,633  $  1,085,325  $  1,079,425  $  1,058,873  $  1,123,137  $  1,062,433 
 Interest Bearing Liabilities $  906,725  $  917,079  $  880,276  $  884,832  $  880,030  $  911,873  $  882,405 
 Shareholders' equity $  141,507  $  135,971  $  132,121  $  130,404  $  123,011  $  138,754  $  118,033 
                 

 

MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
           
    Quarter Ended June 30, Six Months Ended June 30,
Dollars in thousands (except per share data) 2015   2014   2015   2014 
Interest Income       
Interest and fees on loans$  7,154  $  7,021  $  14,586  $  14,100 
Interest on investment securities-       
 Tax-exempt   273     297     548     604 
 Taxable   2,436     2,200     4,864     4,318 
Interest on balances due from banks   14     22     40     54 
   Total interest income   9,877     9,540     20,038     19,076 
           
Interest Expense       
Interest on deposits   619     801     1,264     1,656 
Interest on borrowed funds   177     187     351     373 
   Total interest expense   796     988     1,615     2,029 
           
Net Interest Income   9,081     8,552     18,423     17,047 
Provision For Loan Losses   -      100     (800)    200 
           
Net Interest Income After       
Provision For Loan Losses   9,081     8,452     19,223     16,847 
           
Other Income       
Income from wealth management services   1,191     1,168     2,413     2,302 
Service charges and other fees   1,030     968     1,924     1,900 
Debit Card income   591     542     1,155     1,031 
Net gain on sales of securities   22     219     258     276 
Net gain (loss) on other real estate owned   (21)    (342)    (284)    (330)
Origination fees on mortgage loans sold   137     88     266     150 
Bank Owned Life Insurance income   362     351     633     705 
Other real estate owned rent   103     130     137     265 
Other    390     460     928     949 
   Total other income   3,805     3,584     7,430     7,248 
           
Other Expenses       
Salaries and employee benefits   5,750     5,804     11,624     11,532 
Occupancy expense   606     670     1,426     1,414 
Equipment expense   790     662     1,524     1,279 
Marketing expense   308     212     554     415 
Professional fees   550     521     1,126     939 
Other real estate owned expense   179     361     305     700 
FDIC deposit insurance assessment   429     620     843     1,260 
Bonding and other insurance expense   227     255     457     519 
Telephone expense   109     104     204     247 
Other    782     582     1,486     1,185 
   Total other expenses   9,730     9,791     19,549     19,490 
           
Profit Before Income Taxes   3,156     2,245     7,104     4,605 
Income Tax Expense   871     558     2,042     1,151 
Net Profit$  2,285  $  1,687  $  5,062  $  3,454 
           
Basic Earnings Per Common Share$  0.10  $  0.08  $  0.22  $  0.16 
           
Diluted Earnings Per Common Share$  0.10  $  0.08  $  0.22  $  0.16 
           
Dividends Declared Per Common Share$  -   $  -   $  -   $  -  
           

 

MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
       
       
    (Unaudited)  
Dollars in thousandsJune 30, 2015 December 31, 2014
Assets    
Cash and Cash Equivalents   
 Cash and due from banks   
  Non-interest bearing$  14,398  $  15,957 
  Interest bearing   9,175     36,165 
  Total cash and cash equivalents   23,573     52,122 
       
Securities - Held to Maturity   35,277     32,613 
Securities - Available for Sale   503,703     473,176 
Federal Home Loan Bank stock - at cost   4,148     7,537 
Loans held for sale   1,602     548 
       
Loans    623,570     610,332 
Allowance for Loan Losses   (13,079)    (13,208)
Loans - Net   610,491     597,124 
       
Accrued interest receivable and other assets   28,189     29,465 
Other Real Estate Owned   4,233     5,615 
Bank Owned Life Insurance   52,373     51,825 
Premises and Equipment - Net   28,515     28,632 
  Total assets$  1,292,104  $  1,278,657 
       
Liabilities   
Deposits:   
 Non-interest bearing$  238,164  $  218,221 
 Interest-bearing   883,116     893,590 
  Total deposits   1,121,280     1,111,811 
       
Repurchase agreements   15,000     15,000 
Accrued interest payable and other liabilities   16,960     17,310 
  Total liabilities   1,153,240     1,144,121 
       
Shareholders' Equity   
Common stock (no par value)   23,270     23,037 
Retained Earnings   119,194     114,132 
Unearned Compensation   (30)    -  
Accumulated other comprehensive income (loss)   (3,570)    (2,633)
  Total shareholders' equity   138,864     134,536 
  Total liabilities and shareholders' equity$  1,292,104  $  1,278,657 

 

 

FOR FURTHER INFORMATION:
H. Douglas Chaffin		
Chief Executive Officer		
(734) 384-8123			
doug.chaffin@mbandt.com	

John L. Skibski
Chief Financial Officer
(734) 242-1879	
john.skibski@mbandt.com	 

Primary Logo

NEXT ARTICLE

More From BioPortfolio on "MBT Financial Corp. Announces Second Quarter 2015 Profit"

Advertisement
Quick Search
Advertisement
Advertisement

 

Relevant Topics

Collaborations in biotechnology
Commercial and academic collaborations are used throughout the biotechnology and pharmaceutical sector to enhance research and product development. Collaborations can take the form of research and evaluation agreements, licensing, partnerships etc. ...

Diagnostics
A diagnostic test is any kind of medical test performed to aid in the diagnosis or detection of disease. For example: to diagnose diseases to measure the progress or recovery from disease to confirm that a person is free from disease Clin...